Mantle Surges 21% as Whales Accumulate and Futures Market Turns Bullish

Mantle [MNT] has experienced a significant surge, increasing by 21% over the past week. This rally was driven by substantial accumulation by whale traders and a bullish sentiment in the futures market. Despite the Relative Strength Index (RSI) cooling, the strong buying pressure and positive funding rates suggest that there is potential for further upside.

MNT has been trading within an ascending channel since breaking out of a multi-month downtrend last week. On daily charts, the altcoin surged from a low of $0.72 to a 2-month high of $0.85. After reaching these levels, MNT faced a solid rejection, leading to a retracement. As of the latest update, Mantle was trading at $0.7817, representing a 21.47% increase over the past seven days.

Whale traders have dominated the market over the past 30 days, positioning the altcoin for a potential price rally. The recent uptick can be attributed to a month-long accumulation by whales, as evidenced by the Spot Average Order Size being dominated mainly by large orders. When large holders dominate, it suggests that whales are aggressively participating in the spot market.

MNT has shown sustained buying activity, according to exchange flow data. A Spot Netflow of -$4.3 million indicates that more MNT is being withdrawn from exchanges than deposited. This negative netflow suggests ongoing accumulation, as traders move tokens into private wallets, often a bullish signal. Historically, a higher buying spree has acted as a recipe for a price rally.

In the derivatives market, most investors have entered the market to take a long position. Mantle’s Open Interest jumped 9.2% to $28.8 million, while volume surged by 285% to $47.8 million. Such a spike in these two metrics reflects increased capital inflow in the futures market. As a result, the altcoin’s Funding Rate has continuously held within positive territory, confirming a higher demand for longs. Longs accounted for 75%, while Shorts represented 24% of the total futures position. Typically, a higher demand for longs implies that investors are actively betting on prices to rise.

According to the analysis, Mantle recorded a strong upswing amid sustained accumulation from whales. As a result, the altcoin’s Relative Strength Index (RSI) surged to the overbought zone, sitting at around 73. Likewise, the altcoin’s Chaikin Money Flow (CMF) hovered within a positive region, further confirming the presence of buyers. However, with the RSI dropping from 76 to 73, it signals weakening buyer momentum, which explains the sharp price drop observed on the daily charts.

To maintain the upward momentum, buyers need to regain strength and displace the creeping sellers. If they do, Mantle will reclaim $0.80 and target $0.87. However, failure to do so will result in MNT declining to a low of $0.70.